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Guide

Is paying per client retained allowed in your state?

Last checked by our rules reviewer · 4 minute read

In this guide · 10 sections
  1. What does “paying per client retained” mean?
  2. What does the basic rule say?
  3. Which states reject a price tied to the hire or the fee?
  4. Which states allow a version of it?
  5. Which states require the vendor to be registered?
  6. What about my state?
  7. What should you do before you sign a per-retained-client deal?
  8. What this means for your firm
  9. Questions about this guide
  10. Sources

The short answer

It depends on the state. New York needs the payment not to vary with whether a person hires you, Florida rejects a fee based on the success of the case, and Illinois and D.C. allow versions of a per-hire fee. A percentage of your fee is rejected in New York, Texas, Illinois and Florida. This page is not legal advice; ask your bar or counsel before you sign.

Some marketing vendors charge a firm each time a person signs. The pitch is simple: you pay only when you win. The answers are not simple, and they differ by state. This page explains what we found in the primary sources, state by state, and what to ask before you sign. It is information, not legal advice.

What does “paying per client retained” mean?

It means a vendor’s fee depends on whether the person hires you. There are four common ways to pay, and bars treat them differently.

Four ways to pay a marketing or lead vendor, and where bars tend to draw the line.
How you pay What it looks likeWhere bars tend to land
Flat monthly fee The same each month, whatever happensNot tied to the hire, so it avoids the main problem on this page
Price per lead A set price for each contact, hired or notNot tied to the hire if the price is the same whether or not the person signs; other conditions can still apply
Price per client retained A set price only when the person signs with youSplits by state; the main subject of this page
Share of your fee A percentage of what you earn on the caseRejected in New York, Texas, Illinois and Florida

What does the basic rule say?

Georgia’s version of the rule, in force since March 1, 2026, says a lawyer “shall not compensate, give or promise anything of value to a person for recommending the lawyer’s services” except for a short list of allowed items (Supreme Court of Georgia). Its comment 5 says a lawyer may pay others for client leads “as long as the lead generator does not recommend the lawyer” (same source).

Georgia’s text does not say whether a price that depends on the hire is allowed. That is one reason states differ. The sections below cover the states where we have read the opinion or rule ourselves.

Which states reject a price tied to the hire or the fee?

State What it says Where we read it
New York A lead platform may be paid when, among other conditions, the payment by the lawyer does not vary depending on whether a retention results. A percentage of a fee paid to a nonlawyer bidding platform broke the fee-sharing rule. NYSBA Opinion 1294 and Opinion 1271
Florida The handbook says a fee based on the success or perceived value of the case would be an improper division of fees. A 2018 draft opinion also listed a flat charge per case accepted among the charges that would generally be impermissible. Florida Bar handbook and draft Opinion 18-1
Texas A lawyer may not agree to pay a nonlawyer-owned vendor based on a percentage of the revenues of the lawyer or the lawyer’s firm. We did not find Texas text on a flat price per signed case. Opinion 706

Which states allow a version of it?

  • Illinois allows a lawyer to pay an intermediary connecting service “a reasonable connecting fee for every connection that results in a potential client hiring the lawyer,” but the service’s charges must not be contingent on the outcome of the matter or calculated as a percentage of the lawyer’s anticipated or actual legal fees. The lawyer must also take reasonable steps, such as obtaining written verification from the service (Illinois Rule 7.2). The rule took effect on July 1, 2025.
  • The District of Columbia has concluded that a flat fee for transmittals, or for each client secured, does not violate either D.C. rule 7.1 or 5.4 (D.C. Bar Opinion 342). A firm that advertises in D.C. and in a neighboring state answers to both.

Which states require the vendor to be registered?

Even where the price is fine, the vendor may need to be registered or certified.

  • Missouri applies its referral-service rule to services that refer particular potential clients to particular lawyers, “regardless of the name or characterization of the activities or fees used by the service,” and lawyers may only use services registered with the Office of Chief Disciplinary Counsel (Informal Opinion 2025-05).
  • California’s rule on referral services says “no attorney shall accept a referral of such potential clients” unless all of the listed requirements are met (B&P §6155).
  • Texas says a person may not operate a lawyer referral service without a certificate (Occ. Code §952.101).

Our fuller page on paying for leads, state by state, walks through the four tests bars use.

What about my state?

If your state is not above, we have not read its source on this question, and we do not guess. In our lawyer advertising rules library the referral and lead-generator cell for each state is marked by how we sourced it: read from a primary source, read from a secondary one, or following the ABA model rule until we check. Treat anything other than a primary source as a starting point.

What should you do before you sign a per-retained-client deal?

  1. Find your state’s rule and any opinion on lead generators, starting with the library above.
  2. Ask your bar’s ethics line whether the pricing is allowed. Ask in writing, and keep the reply.
  3. Ask the vendor whether it recommends lawyers, how it chooses which lawyer gets a contact, and whether it is registered where your state requires it.
  4. Read the paperwork. Our vendor contract checklist lists the eight clauses to find, naming no one.
  5. Compare the real cost. Divide what you paid by signed cases from your own records. See pay per signed case versus owning your marketing.

For when two lawyers split a fee, see the attorney referral fee rules by state.

What this means for your firm

  • A price per retained client is not safe everywhere. Check your state before you sign.
  • A percentage of your fee is the clearest no.
  • A flat monthly fee is the simplest to defend, which is how we price: flat, published, with every account in your name.

Get my free review and we will check your marketing against your state’s ad rules.

This page is information, not legal advice, and Probative is a marketing firm, not a law firm or a lawyer referral service. Ask your state bar or your own counsel. Last reviewed by our rules reviewer.

Questions about this guide

Is paying a vendor per client retained legal in every state?

No. Some bars treat a price that depends on whether the person hires you as a payment for a referral, and others allow a version of it under conditions. Where we have not read the source for your state, treat the answer as unknown until your bar or counsel says otherwise.

Is a price per lead the same thing?

No. A price per lead stays the same whether or not the person hires you, which is the pattern bars most often accept, as long as the vendor does not recommend you. A price per retained client changes with the hiring, which is where the opinions split.

Does this page tell me what to do in my state?

No. It is information, not legal advice. Bar rules and opinions change, and your facts matter. Ask your state bar's ethics line or your own counsel, and keep the answer in writing.

Does Probative charge per client retained?

No. We never charge per lead or per case, and we never take a share of your fees. Our fees are flat and published, and the ad accounts are in your name.

Sources

  1. Supreme Court of Georgia, order of November 18, 2025 amending Rules 7.1 to 7.5 (effective March 1, 2026): Rule 7.2(b) and comment 5Accessed October 26, 2026
  2. NYSBA Committee on Professional Ethics, Opinion 1294 (March 2026): lead generatorsAccessed October 26, 2026
  3. NYSBA Committee on Professional Ethics, Opinion 1271 (August 2024): sharing legal fees with a nonlawyer bidding platformAccessed October 26, 2026
  4. Illinois Rule of Professional Conduct 7.2 (intermediary connecting services), effective July 1, 2025Accessed October 26, 2026
  5. The Florida Bar, Handbook on Lawyer Advertising and Solicitation (December 2025), Rule 4-7.22 commentAccessed October 26, 2026
  6. The Florida Bar, proposed advisory opinion 18-1 (draft of October 2018)Accessed October 26, 2026
  7. Texas Professional Ethics Committee, Opinion 706 (February 2025)Accessed October 26, 2026
  8. District of Columbia Bar, Legal Ethics Opinion 342 (2007)Accessed October 26, 2026
  9. Missouri Office of Legal Ethics Counsel, Informal Opinion 2025-05Accessed October 26, 2026
  10. Cal. Bus. & Prof. Code §6155 (lawyer referral services)Accessed October 26, 2026

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How we checked this page

Sources
10 sources listed on this page, 4 of them official (government, courts, state bars or the platform’s own published policy), each with the date we read it.
Checked by
Our rules reviewer, with a second person checking every number against its source (who does what).
Last checked
What it covers
US law firms in every state. Where a rule, price or platform policy differs by state or changes often, the page says so and links the detail. Not legal advice.
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